Exam 1: The U.S.Business Environment

There is a trend towards mixing business and entertainment.This is an example of which element of the external environment?

The ________ is the pattern of short-term ups and downs in an economy.

Which of the following best describes the consumer price index?

Standard of living refers to the quantity and quality of goods and services that people can purchase with the currency used in their economic system.

What business concept explains the change in the U.S.economy between 2005 and 2009?

In 2000,government regulators feared that the merger deal between media giant Time Warner and America Online would result in a(n)________,a market or industry in which there is only one producer.

The funds needed to create and operate a business enterprise are ________.

A factor of production is a nation's system for allocating resources among its citizens.

An example of the influence of the economic environment is when most people have jobs and therefore a growing company may find it necessary to pay higher wages and offer more benefits in order to attract workers from other companies.

What does the future hold for the U.S.economy?

Which of the following best describes economic stability?

Short Case Scenario 1-1 Expert Electronics is a manufacturer of computers on the large, but isolated, island nation of New Vermont. Although imports are extremely limited because of difficult navigation to and from New Vermont, there are a handful of computer manufacturers in addition to Expert Electronics. While the government provides some services, such as public education and a well-maintained road system, almost all businesses are privately owned. Home ownership is unusually high, with 80 percent of all families owning their own home. Expert Electronics is selling a state-of-the-art desktop computer system for 1,299 veros (the local currency). At this price, Expert Electronics is able to fill all orders, but they have no waiting list. -Even with a handful of computer manufacturers on the island,the industry runs the risk of market saturation in the long run.How might this affect equilibrium price?

An increase in ________ will result in growth.

Tax increases and decreases are a form of fiscal policy.

Electric companies are good examples of natural monopolies.

Economic systems allocate the factors of production differently.

The process of converting government enterprises into privately owned firms is called ________.

The ________ refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production.

The key difference between economic systems is the different ways in which they manage ________.

________ exists when an industry has only a handful of sellers,most of which are large.